Small businesses must compete against multinational brands in most industries. The Internet has opened up the world to big businesses, and it's difficult for a small business owner with a minimal marketing budget to out-advertise their main competitors.
Innovating is the key to competing with big businesses, and it's been working very well for a lot of small business owners.
A few of the innovative ways that small businesses are able to find profitability against big business are:
1. Introducing New and Innovative Approaches to Common Problems
The medical industry is a great example of an industry which prospers when new, innovative techniques are added into the mix. Why? People are always looking for alternative treatments or methods that may provide relief or a cure.
Dr. Allen, a doctor that has taken a different approach to common chronic problems, invented what's known as thermobalancing therapy. The therapy uses a physiotherapeutic device, both received a US patent, that helps to reverse prostate enlargement.
First-line treatments for chronic disease and the management of diseases is a booming industry. Through innovation and a new approach, the device has led Dr. Allen to become a key speaker at two International Conferences.
Not only will these conferences bring further attention to his therapy, but it will also put his device in front of his key demographic. Any small business, that aims to solve a problem should be trying to come up with an innovative, fresh solution to find success.
2. Niche Down Your Offers
A small business that wants to compete in online retail, which means competing with Amazon, will fail if they attempt to list millions of products. Small businesses cannot compete against large businesses from the get-go.
It's the slow building of a business over time that allows for a small business to even think about competing with Amazon.
But, let's say that your business goes into "laser focus mode." You've removed all of the services or products that don't make sense or take up too much resources. Basic customers need to be the focus of a business.
And these basic needs must allow for quick sales, higher revenue and ample growth options.
Focus on one product, one service and make it the best it can be. Red Bull did this when consumers didn't know what the product was: an energy or sport drink.
Thermobalancing therapy, as an example, entered the global surgical devices industry for prostatic hyperplasia (BPH). The industry is expanding, and the drug market is increasing. The therapeutic market value was at $10,689 million in 2017 and is projected to reach $20,097 million in 2025, registering a CAGR of 8.1% from 2018 to 2025.
Niching down offers doesn’t always mean entering a market that is unprofitable. Niching down can mean just taking a small market share out of a market with limited competition.
3. Focus on What Consumers Love: Customer Service
Big businesses don't offer the same level of customer service that they did 30 years ago. Very few big businesses will remember a customer's name, and they sure won't remember the conversations that you had in the past.
And this is where small businesses can really shine.
Send handwritten notes to clients, spend extra time finding a solution to a client's problem – deliver what has been lost in big business.
Customer service tools and CRM software can help you properly manage your business's customer base so that you can better serve your customers. Build lasting relationships with your clients and customers, and you'll run a long, successful business.
Filed under: Entrepeneur